What are the benefits?
The sharing economy potentially offers huge benefits — not just for consumers, but for the companies offering, and using, these services, and even society itself. That’s not hyperbole, the more resources we’re able to share, the less of an impact we have on the planet. Manufacturing can be reduced, which means we can reduce pollution and preserve natural resources. And the fewer cars on the road, the better.
And that environmental impact is a significant driver for consumers, particularly millennials who are now the biggest generation group in society. Not only are they more conscious of their impact on the environment, but they’re infamous for their limited spending power. Being able to rent rather than buy opens up a whole new world of opportunities for this market. They may not be able to afford a couture gown, but could afford to hire one for a weekend.
The sharing economy isn’t just creating new possibilities in the B2C space but for B2B too. Servitisation is where businesses rent services from other businesses rather than owning them outright. It’s a way for businesses to transform for the future and challenge incumbents. And those already adopting it are seeing service revenue 30% higher than their peers.
“As a service” business models are giving businesses greater flexibility and agility. Businesses can avoid capex outlay and scale, up or down, as needed. There are examples of manufacturing companies renting out their tools and equipment when not in use, defraying the cost of expensive equipment. Businesses are no longer limited by their immediate resources and can quickly adapt to their changing needs — and those of their customers.